Overcomplication in itself is not necessarily a bad thing, but you made a mistake when you showed your giant rules system to the players. When they see not just one, but three TL;DRs, they get scared and won't want to participate. You should have given us as little information as possible.
Remus: Harry... I'm a werewolf.
Harry: Are you fucking serious?
Remus: Well yes, but I don't see how that applies here.